There is no generally accepted theory to explain theory to
explain the causes of financial crises but one thing is sure,
they happen again and again. They involve speculation
when assets are bought in the hope that the price will rise,
or sold, in the expectation of a fall in the price. If the price
rises, those who bought the asset can sell and make a
profit. If the price falls, sellers can profit by buying the asset
back at a lower price. The objects of speculation can be
financial assets sucH as shares, bonds, or currencies, or
physical assets such as land, property, or works of art.
Crises happen when the speculation destabilize the
market causing prices to rise or fall dramatically.